Nikkei hits longest losing streak in 43 years

By Aiko Hayashi

TOKYO (Reuters) - The Nikkei average fell 1.3 percent on Wednesday to hit its longest losing streak in more than 40 years, as worries about the global economy hit exporters such as Canon Inc (7751.T: Quote, Profile, Research, Stock Buzz).

Shipping firms extended losses after freight charges on the Baltic Dry Index dropped over 2 percent and on worries that high oil prices would hurt demand from emerging markets.

The benchmark Nikkei logged its 10th straight negative day, a period in which it has slid about 8 percent, its longest losing streak since February-March 1965.

"The worst factor for the market is oil prices that don't stop rising. Investors are in a complete wait-and-see stance," said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments.

"Rather than directly damaging the Japanese economy, high oil prices hurt emerging economies and that will hit Japanese exports. The global economy will also obviously move downward," he said.

The Nikkei lost 176.83 points to end at 13,286.37, the lowest close since April 16.

The broader Topix shed 1.4 percent to 1,301.15, its lowest finish since April 17.

Oil rose more than $1 a barrel on Wednesday, within sight of Monday's record high above $143 on forecasts that global supply will lag demand.   Continued...